BUSINESS telecoms carrier Thus said yesterday that it is on track to meet earnings forecasts despite tough economic conditions.

The Glasgow-based firm said it was "comfortable" with City predictions that underlying earnings could rise by up to 45% in the year to March 31 2004.

Updating shareholders ahead of the company's annual general meeting yesterday, chief executive William Allan said Thus had landed a number of new accounts with well- known names including car repair chain Kwik-Fit and radio group GWR as well as building up business with existing customers.

He also reported progress on its national ethernet service, which makes it easier for businesses with offices in different parts of the country to operate the same internal computer systems, was making progress after launching earlier this year.

He said three months into the new financial year, it was on course to meet its target of generating sustainable positive cashflow by the fourth quarter.

Analysts have pencilled full year earnings before interest, tax and depreciation charges of between &#xA3;39m and &#xA3;45m compared to &#xA3;27.1m in the last financial year.